Pa. Turnpike is on ‘road to ruin’, auditor general says; toll hikes driving people away

Updated Mar 22, 2019; Posted Mar 21, 2019

State Auditor General Eugene DePasquale is calling for the General Assembly to find a legislative fix to the financial woes facing the debt-ridden Pennsylvania Turnpike Commission.
File photo/Sarah Cassi | For lehighvalleylive.com lehighvalleylive.com

Fares on the Pennsylvania Turnpike rose this year for the 11th consecutive year and will continue to do so for years to come because of the financial bind it finds itself in due to a 2007 state law.

But at what point, will motorists quit using the toll road, opting for a more economical route?

State Auditor General Eugene DePasquale suggested that is already happening.

He released an audit of the turnpike on Thursday indicating the turnpike is on the road to ruin unless state lawmakers provide the turnpike some relief from the $450 million annual payments it is obligated to transfer to PennDOT through 2022 to help fund public transit agencies.

Pennsylvania Auditor General Eugene DePasquale (shown here at the podium standing next to Pa. Turnpike CEO Mark Compton) To put that debtload into perspective said next year’s turnpike debt is going to be higher than the entire debt the commonwealth owes.

To make those payments to PennDOT, the turnpike has had to borrow money. That borrowing now accounts for about $6 billion of the turnpike’s total $11.8 billion debt. To put that debtload into perspective DePasquale said next year’s turnpike debt is going to be higher than the entire debt the commonwealth owes.

“The idea that motorist and truckers on [the turnpike] are going to be able to pay that entire debt back is literally delusional,” DePasquale said. “Drivers are not going to continue to pay these tolls.”

Mark Compton, the turnpike’s CEO, said the debt service payments on that borrowing now eats up about half of the $1.2 billion the turnpike collects in tolls, leaving little to make improvements to the 78-year-old toll road.

“It just isn’t sustainable,” DePasquale said. “The ever increasing tolls are not only not putting a dent in the debt of the Pennsylvania Turnpike but it’s actually driving, no pun intended, forcing less people to use the turnpike.”

As a result of that lawsuit, the turnpike has stopped borrowing and deferred three payments to PennDOT so far. It is expected to defer the next one due in April as well. That is having a ripple effect causing PennDOT to put numerous projects on hold and public transit agencies are preparing contingency plans if their state funding is cut.

At a recent House budget hearing, Transportation Secretary Leslie Richards, who also chairs the turnpike commission, said if the turnpike loses that lawsuit and is forced to refund tolls, “it would be catastrophic to have to pay back $6 billion right away.”

An audit released on Thursday of the Pennsylvania Turnpike finds the turnpike's debt is causing tolls to rise to the point it is causing motorists to think twice about using the toll road.

DePasquale’ recommends the General Assembly act to end the turnpike’s annual payments to PennDOT and come up with a different way to fund public transportation. DePasquale suggested legalizing and taxing adult-use recreational marijuana, which he has been advocating for over a year, as a possible way to fund public transportation with some money leftover to put into education.

Sen. Kim Ward, R-Westmoreland County, announced on Wednesday that she convened a working group to begin to discuss options for solving the state’s transportation funding concerns, including the turnpike’s financial problem as well as finding a new source of funding for mass transit.

Compton said the turnpike commission stands ready to work with the Legislature to fix the problem that it alone can’t fix. “We need help,” he said.

The audit also suggests the turnpike look for ways to increase turnpike usage as well as cuts in its operating expenses. It also recommends prioritizes only capital projects that require immediate attention, and keep its traffic projections for future toll revenue growth realistic. Compton said the turnpike will take all of those recommendations to heart and make a plan to address each one.

DePasquale also made it clear that this problem facing the turnpike has far-reaching effects that go beyond hitting the wallets harder of turnpike users.

He said the cost of the increased tolls that trucks hauling goods that Pennsylvanians are buying is passed along through higher prices for consumers. Additionally, it is putting heavier use on roads that are not built for heavy traffic.

The audit, covering June 2015 to Jan. 30 of this year, also took note of steps taken to correct some of the problems earlier turnpike audits uncovered. That includes the passage of a state law to go after drivers who avoid paying tolls, which has enabled the turnpike to collect more than $1.4 million during an amnesty period offered in 2017. The turnpike also is working on making arrangements with other states to go after scofflaws.

Additionally, the turnpike has begun to cut back on turnpike employees who abuse their privilege of driving toll-free on the turnpike for business or frivolous use. As a result of closer monitoring, the turnpike has received $10,125 since 2011. DePasquale said he opposes allowing the employee ride-free policy and encouraged the turnpike commission to take a closer look at that policy.

He also suggested the turnpike look to reduce the number of non-emergency vehicles in its 191-vehicle fleet by cutting out the vehicles to turnpike commissioners, upper-level managers and other staff. He suggests paying them mileage for use of their personal cars when on turnpike business instead, which is more in line with most businesses’ practice.

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